Scams: Banks

To reduce the number of ‘zero-balance’ Jan Dhan account, the Bank staff itself adding one rupee in such accounts of poor people by diverting the money meant for office/canteen expenditure. Account holders themselves unaware.

Financial inclusion alone not sufficient, without generation of jobs / incomes. This data-dressing tends to hide this problem.

Bank of Maharashtra

CMD Sushil Muhnot removed for allegedly occupying two houses.

Scams: Share market

Stock gaming

Sites such as “stockrace.in”, allow lottery type of games linked with performance of BSE-NSE, where real money and physical prizes are given.

Experts criticize this as one type of ‘betting/gambling’. But SEBI helpless. Matter falls in State government domain. Assam-Odisha laws have forbidden them.

NSE

Allegations that big brokers are using algo-trading (using computer algorithm to put large scale orders) and they’ve installed such system within NSE building to get faster access to portal compared to ordinary share investors accessing through (*insert name of your most hated mobile company*) ki bogus 3G/4G service.

Pillar#2: Budget, Public Finance

Lot of updates but will cover in future lecture since the topic is still evolving.

Budget reform

Plan vs non-plan classification to be removed, Budget date to be advanced, rail budget to be merged…More in future lecture.

Income declaration scheme

~65,000 people declared black money worth Rs.65,000 crores.

In the earlier scheme of 1997- amnesty was given, but this 2016 scheme involves penalty of 45% on black money so, it can’t be called “amnesty scheme.”

More insights in future lecture.

E-nirvan

This portal is launched by CBDT to handle Income tax payers’ grievances.

1924

This is the toll free number to complaint against Indian Post.

Commodity boards

Commerce ministry suggests that in tea, coffee, rubber, tobacco board- the chairman should be a politician and IAS should be of dy. Secretary rank. Earlier IAS themselves used get appointed as Chairman.

PFMS

Public financial management system (PFMA) is managed by Controller General of Accounts (CGA).

This webportal gives real-time monitoring of the central funds allotted to various central schemes; with its treasury-bank interface.

Doesn’t monitor state schemes.

Voluntary for states to join, but government hopes by 2017,March all will join.

W.Bengal not joined the portal, but Union assures it’s not ‘intrusive’, only central funds to CSS will be monitored.

CGA also manages NRTP: Non-tax receipt portal.

CGA’s new building inaugurated. Its name is “Mahalekha Niyantrak Bhavan”

Committee pe Committee

Justice AP Shah Panel

RIL should compensate ONGC for the KG-D6 block for past 7 years because RIL was gas from ONGC’s block was migrating to Reliance’s block in the Krishna Godavari basin.

Government order DG-hydrocarbon to work out the penalty formula on reliance.

This committee will look into issues related to taxi-operators including surge pricing by taxi-app companies and taxi-permits.

Body pe body

FM to setup a forum, which will apprise creation of new institutions/bodies/SPV etc.

Labour and wages

Minimum wages

For unskilled non-agro worker, the minimum wages have been hiked from 246 to Rs.350 per day. But trade union demand Rs.18,000 per month. Hence planning to go on strike.

MP wages

Government brining bill to raise MP’s emoluments to Rs.2.8 lakhs per month.

Pillar-3: BoP and World Trade

WTO

American solar companies had challenged India’s JNSolar mission under which desi solar panels were given first preference in public procurement.

WTO ruled in favour of USA.

India went to WTO-appellate body but they also ruled in favour of USA.

World Bank

Traditionally, World bank chief chosen by USA and IMF chief by Europe.

Jim Yong Kim’s first five year tenure ends on June 2017. he’s given 2nd term. (although staff had opposed)

Cyprus DTAA

After fixing CGT exemption from Mauritius DTAA, now government doing same with Cyprus. No more CGT exemption from April 2017.

BIS

Bank for international settlement (BIS) says Banks in china are to face crisis in next 3 years because they’re unwittingly giving too much loans to home buyers and real-estate developers.

But some experts say just because American banks burned hands in Sub-prime lending doesn’t mean history shall repeat in China.

Bahama papers

After Panama papers, now Bahama papers leaked- detailing the shell firms registered by the rich to evade tax in their home countries. ~475 from India.

Vodafone

Receives 47,000 crore FDI infusion from parent company to compete after Reliance-4g offer!

This is the biggest FDI infusion in Indian history.

Exchange rate council

Comm. Min wants there should be a separate panel to decide the value of rupee against foreign currency. At present, rupee said to be 10% overvalued against dollar- hence negatively affecting exports.

Apple-Ireland

EU orders Apple to pay #13 billion Euro as back tax to Ireland. Ireland itself not keen to accept money fearing it’ll deter other investors from opening companies and creating jobs in Ireland.

Pillar-5: Infrastructure

Smart city

Third round – 27 cities from 12 states selected

Total count is – 60 x each to get 200 crores from union.

PPP

CAG tells PAC that PPP projects get money from Consolidated fund, hence should be audited by CAG. PAC forms a subpanel to examine how to do it in systematic manner.

Sasan UMPP

This ultra-mega powerplant is Located in Madhya Pradesh. Reliance power has mortgaged the coalmines linked to this project to lenders. But coalmin prohibited those lenders from transferring the leases to third parties without its consent.

Railways

Rail budget

To be merged with general budget. Will be covered in lecture.

Hyperloop train.

They run faster than aircraft at a speed of 1120 kmph. Niti Gadkari met SpaceX entrepreneur Elon Musk and suggested him to introduce such trains in INDIA!

Talgo rails

Talgo is a Spanish company specializing in high speed railways.

It has given a trial train to India – claiming to run at 200 kmph.

Desi trains use Linke Hoffman Busch (LHB) coaches- their wheels are joined by axle underneath